General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
October 23, 2017

ECB published a report on financial structures in the euro area, which reviews the main structural features of, and developments in, the broader euro area financial sector. The report covers the banking sector (monetary financial institutions, or MFIs), insurance corporations and pension funds, and other financial intermediaries (OFIs).

The first chapter of the report presents the evolution of the overall structure and composition of the financial sector, also analyzing the interconnectedness across different parts of the financial sector to assess possible structural risks to financial stability. The second chapter presents structural developments in the euro area banking sector, providing a wide set of structural information from both a cross-sectional perspective (that is, different banking types, business models, etc.) and a time perspective. The third chapter discusses structural developments in euro area insurance corporations and pension funds. Although the sector continued to grow, it remained strongly concentrated in a relatively small number of countries, with France and Germany each accounting for more than a quarter of this sector in the euro area, followed by the Netherlands (18%) and Italy (10%). The fourth and final chapter reviews the structural features of the euro area non-bank financial sector, including all other financial intermediaries, except insurers and pension funds. Structural features of different parts of the non-bank financial sector are outlined in more detail, namely for non-money market investment funds, money market funds, and financial vehicle corporations.

The report shows ongoing consolidation in the banking sector while assets in the investment fund sector grew by 7% in 2016. Euro area banks’ median common equity tier 1 ratio rose to 15.4 % in 2016, from 14.4 % in 2015. While the median nonperforming loan (NPL) ratio declined further, the stock of NPLs remained persistently high in a number of countries. Solvency position of the insurers and pension funds is well above the requirements of the EU’s Solvency II supervisory regime. This report serves as a complement to the semi-annual ECB Financial Stability Review (FSR), which focuses more on cyclical factors.


Related Link: Report on Financial Structures (PDF)

Keywords: Europe, EU, Banking, Insurance, Securities, Basel III, Solvency II, ECB

Related Insights

EBA Single Rulebook Q&A: Third Update for February 2019

EBA published answers to two questions under the Single Rulebook question and answer (Q&A) updates for this week.

February 15, 2019 WebPage Regulatory News

FSB Report Examines Financial Stability Implications of Fintech

FSB published a report that assesses fintech-related market developments and their potential implications for financial stability.

February 14, 2019 WebPage Regulatory News

US Agencies Amend Regulatory Capital Rule to Allow Phase-In for CECL

US Agencies (FDIC, FED, and OCC) adopted the final rule to address changes to credit loss accounting under the U.S. generally accepted accounting principles; this includes banking organizations’ implementation of the current expected credit losses (CECL) methodology.

February 14, 2019 WebPage Regulatory News

FED Issues Correction in Historical Dataset in its 2019 Stress Tests

FED identified an error in the historical dataset used in its 2019 stress tests and issued a correction.

February 13, 2019 WebPage Regulatory News

OCC Consults on Company-Run Stress Test Requirements for Banks

OCC proposed amendments to its company-run stress testing requirements for national banks and Federal savings associations, consistent with section 401 of the Economic Growth, Regulatory Relief, and Consumer Protection (EGRRCP) Act.

February 12, 2019 WebPage Regulatory News

CFTC Extends Comment Periods for Trade Execution Requirement Proposals

CFTC announced that it is extending comment period for the proposed amendments related to the regulations on swap execution facilities (SEF) and trade execution requirement.

February 12, 2019 WebPage Regulatory News

BCBS Updates Instructions for Basel III Monitoring Exercise

BCBS updated instructions for Basel III monitoring for the collection of December 2018 data from the participating banks.

February 12, 2019 WebPage Regulatory News

OCC Proposes to Renew Information Collection Under Stress Test Rule

OCC is proposing to renew its information collection titled “Annual Stress Test Rule” (OMB Control No: 1557-0311). Comments must be received on or before March 13, 2019.

February 11, 2019 WebPage Regulatory News

OSFI Consults on NSFR Disclosure Requirements for D-SIBs

OSFI proposed the draft guideline on the net stable funding ratio (NSFR) disclosure requirements for domestic systemically important banks (D-SIBs).

February 11, 2019 WebPage Regulatory News

EC Amends Its Regulation to Clarify Impairment Requirements for IFRS 9

EC published the EU Regulation 2019/237 that amends Regulation (EC) No 1126/2008 adopting certain international accounting standards, in accordance with Regulation (EC) No 1606/2002 regarding International Accounting Standard (IAS) 28 on Investments in Associates and Joint Ventures.

February 11, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2601